EUR/USD stalls post-FOMC slide, back above 1.19 handle
|The EUR/USD pair finally seems to have broken out of its post-FOMC consolidation phase and recovered over 40-pips from the 1.1865-60 region.
With investors looking past Wednesday's hawkish Fed outlook, a modest US Dollar pull-back, led by retracing US Treasury bond yields, seems to be only factor behind the pair's recovery move from weekly lows support.
Meanwhile, the ECB's monthly Economic Bulletin, which revealed policymakers confidence that the ongoing economic expansion, though is yet to be translated into stronger inflation dynamics, was good enough to gradually lift inflation to the target.
This coupled with the latest German election poll results, indicating Chancellor Merkel's Conservatives victory, further collaborated to the pair's uptick over the past hour or so.
The up-move, however, lacked any strong conviction amid growing market conviction that for additional Fed rate hike action by the end of this year.
Later during the NA session, the US economic data might provide some short-term trading impetus, but today's key highlight would be a scheduled speech by ECB President Mario Draghi.
Technical levels to watch
Immediate resistance is pegged near 1.1920 level, above which the pair is likely to make a fresh attempt to reclaim the key 1.20 psychological mark with some intermediate resistance near the 1.1975-80 region.
On the flip side, sustained weakness back below 1.1890 level, leading to a follow through slide below 1.1865-60 support, is likely to accelerate the fall towards 1.1825-20 important horizontal support.
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